UAE Central Bank and Financial Institutions Decree-Law — articles 101–188

An Insurance Company may transfer Insurance Policies it has concluded in the State, including the rights and obligations related to any type of insurance it carried on to other Insurance Company(ies) that carry on the sa…

1. Insurance transfer application shall be submitted to the Central Bank, accompanied by documents related to the transfer agreement. The transfer application shall be published in two local daily newspapers, one of whic…

Without prejudice to the provisions of Article (126) of this decree-law, should an Insurance Company wish to free up its funds that are required to be maintained in the State for one or more types of insurance, it shall …

Takaful Insurance Companies, Re-Takaful Insurance Companies and Insurance Companies that carries on Takaful Insurance business shall engage in Takaful Insurance business in such a manner that does not violate the rules a…

1. Takaful Insurance Company, Insurance Company, or Reinsurance Company that carries on Takaful Insurance business shall establish a fund that has an independent legal personality and financial liability distinct from it…

1. Pursuant to the provisions of this decree-law, a professional union shall be established called ‘Emirates Insurance Federation’, which shall have the juridical personality and legal capacity necessary to carry on all …

1. The Board of Directors may issue regulations, rules, standards, conditions, and instructions, specifying Designated Functions subject to Central Bank authorization and the individuals who shall be required to obtain C…

1. A Licensed Financial Institution shall submit an application to the Central Bank for authorization of any individual to undertake any of the Designated Functions or to undertake additional Designated Functions. 2. The…

1. Deciding on application for authorization or extension thereof shall be within a period not exceeding twenty (20) working days from date of meeting all conditions and requirements for authorization. The lapse of this …

1. The Central Bank may decide to add conditions or restrictions to an authorization to undertake Designated Functions. 2. The Central Bank may, before issuing the decision referred to in item (1) of this article, reques…

1. The Central Bank may suspend, withdraw, or revoke the authorization issued to an Authorized Individual undertaking Designated Functions, by an official notice, in the following cases: a. If the Authorized Individual c…

1. The Central Bank may prohibit any individual from working, or undertaking Designated Functions related to Licensed Financial Activities if it considered that the concerned individual was not fit and proper to work or …

All Other Financial Institutions are obligated to maintain guarantees, in the form of cash deposits, with the Central Bank as a guarantee for fulfilling their obligations referred to in this decree-law, in accordance wit…

1. Licensed Financial Institutions shall comply with all regulations, rules, standards, circulars, directives, and instructions issued by the Central Bank with regard to lending or other matters it deems necessary for ac…

The ‘Risk Bureau’ at the Central Bank shall undertake compilation, exchange and processing of credit information from Licensed Financial Institutions or any party the Central Bank deems necessary in the State. The said b…

1. Each deposit-taking Licensed Financial Institution shall prepare a quarterly statement, in the form specified by the Central Bank, indicating all credit and funding facilities granted by such institution to: a. Any me…

1. The Central Bank may prohibit Licensed Financial Institutions from conducting all or some of the following: a. Dealing in specific assets, investments, or monetary and financial instruments. b. Closing deals or conduc…

Deposit-taking Licensed Financial Institutions shall not carry on any of the following activities: 1. Carry on, for its account, commercial or industrial business or acquire, own or trade in goods, unless the acquisition…

1. Licensed Financial Institutions may extend credit facilities to members of their boards of directors, their employees, or relatives of such Persons as determined by the Board of Directors. 2. The Board of Directors sh…

1. A Person shall not, whether solely or jointly with related parties, hold controlling interest, or increase controlling interest in any Licensed Financial Institution, nor exercise powers, which render him a de facto h…

A Licensed Financial Institution shall not establish any branch or subsidiary inside or outside the State or in a Financial Free Zone, or relocate or closedown any existing branch without Central Bank’s prior approval.

1. Licensed Financial Institutions shall: a. Provide the Central Bank with reports, information, statements and other documents, which it determined and considered necessary for achieving its objectives and discharge its…

1. Licensed Financial Institutions, along with their legal representatives, compliance officers, and auditors of accounts shall be responsible for, immediate reporting of any of the following to the Central Bank: a. Occu…

1. Each Licensed Financial Institution shall be required to provide the Central Bank with the statements and reports relating to its financial position, in addition to providing it within a period not exceeding three (3)…

1. A Licensed Financial Institution shall not merge with or acquire any other institution, regardless of its type of activity, nor transfer any part of its liabilities to another Person, without obtaining Central Bank’s …

A Licensed Financial Institution shall not cease to operate, fully or partially or suspend its operations, or cease to carry-on all or part of its Licensed Financial Activities without approval of the Central Bank.

The Central Bank may conduct consolidated supervision of Licensed Financial Institutions according to the rules established by the Board of Directors for that purpose, including the level and the scope of the application…

1. The Board of Directors shall, for the purposes of prudential supervision, issue necessary instructions and directives to a particular Licensed Financial Institution, or to a number of Licensed Financial Institutions w…

The Central Bank may set limits to which Licensed Financial Institutions shall adhere to in their operations, including but not limited: 1. The maximum amount of funding extended under securities-related operations, disc…

1. The Central Bank shall establish a general framework for governance of Licensed Financial Institutions, and shall issue rules and regulations relating to organization of their boards of directors and shall determine t…

The Central Bank shall establish an electronic guide, which would include all regulations issued by the Central Bank in accordance with the provisions of this decree-law. Such guide shall be published and regularly updat…

The regulations, decisions, or circulars issued by the Central Bank in accordance with the provisions of this decree-law shall have no retroactive effect, and shall not prevent implementation of agreements concluded betw…

1. The Central Bank may, at any time, dispatch any of its staff or any third party authorized to act on its behalf to Licensed Financial Institutions, their owned companies or subsidiaries, if it is deemed necessary to e…

The Central Bank may dispatch one or more of its examiners or experts, to undertake examination of entities of national Licensed Financial Institutions operating abroad, in collaboration and coordination with the concern…

The Central Bank may assign an expert or a Person qualified in the area of Licensed Financial Activities, to provide it with a report on a subject specified by the Central Bank, relating to direct and indirect business a…

Central Bank staff designated per decision issued by the Minister of Justice, in coordination with the Governor, shall, in establishing acts occurring in violation of the provisions of this decree-law, have the capacity …

1. Without prejudice to the provisions of the ’Civil Procedures Law’, the Central Bank may request intervention in any lawsuit filed before judicial authorities to which a Licensed Financial Institution is party. 2. Law …

The financial year for a Licensed Financial Institution shall begin on the first of January and end on the thirty first of December of each year, except for the first financial year, which begins from date of registratio…

1. Branches of foreign Licensed Financial Institutions shall maintain separate accounts for all their operations in the State, including the balance sheet and profit and loss account. 2. Branches and sections of Licensed…

1. Each Licensed Financial Institution operating in the State shall appoint an auditor of accounts or more, from amongst the auditors approved by the Central Bank, for auditing its accounts. Should the concerned Licensed…

1. Each Licensed Financial Institution shall publish and post the following information and statements on its website, and in each of its offices and branches in the State: a. Copy of its audited balance sheet and profit…

1. Where a Licensed Financial Institution, breaches or is likely to breach its capital or liquidity requirement due to a rapidly deteriorating financial condition s, or where the concerned institution itself or one of it…

1. The Central Bank is the ‘Resolution Authority’ in the State and shall have the following powers in case of restructuring or winding down any Licensed Financial Institution, it places under resolution: a. Remove and ap…

Subject to the powers and measures exercised by the Central Bank under Articles nos. (142) and (143) of this decree-law, any amounts due and payable by a Licensed Financial Institution placed under resolution by the Cent…

1. In case of resolution or liquidation of a Licensed Financial Institution, such an announcement shall be published in the Official Gazette; and in, at least, two local Arabic and English daily newspapers, and for a per…

The Central Bank shall continue surveillance of operations of any financial institution under resolution or liquidation, until final closure of its offices.

1. All data and information relating to customers and business of Licensed Financial Institutions and related transactions shall be considered confidential in nature, and shall not be perused, or directly or indirectly d…

1. The Board of Directors shall issue regulations relating to protection of customers of Licensed Financial Institutions, in line with the nature of activities the latter carry on and the services and products they offer…

1. Licensed Financial Institutions shall implement robust fraud prevention and detection mechanisms to safeguard customers against unauthorized transactions, social engineering, identity theft, and other fraudulent activ…

1. Licensed Financial Institutions shall obtain and maintain adequate guarantees for all types of facilities provided to natural persons and sole proprietorships customers, commensurable with the customer’s income, or th…

1. The Central Bank may establish specialized funds that have independent legal personality for the purpose of protecting depositors, Insured, Beneficiaries, stabilize Licensed Financial Institutions undergoing a severe …

1. The Board of Directors shall establish necessary regulations and mechanisms to ensure that every Person shall have the right to access all or part of the banking and financial services and products from Licensed Finan…

1. The Central Bank may: a. Establish, develop, or operate one or more clearing or settlement systems for transfer of funds, and settlement of securities for securities issued by the Central Bank, the Public Sector or Go…

1. Any juridical person may, in accordance with regulations issued by the Board of Directors, submit to the Central Bank an application for licensing a Financial Market Infrastructure, or extension of the scope of a prev…

1. Deciding on licensing of Financial Market Infrastructures or extension of its scope shall be within a period not exceeding sixty (60) working days from date of meeting all licensing conditions and requirements. Expiry…

The Central Bank shall solely: 1. Have the authority to issue regulations, rules, and procedures relating to digital banking operations, digital money, payment tokenization, stored value facilities, and shall regulate wh…

1. The Central Bank may designate any Financial Market Infrastructure as systemically important (‘Designated Infrastructure’) if it considers, at its own discretion, that any malfunction or inefficiency in the operation …

1. The Central Bank shall solely undertake oversight over operations of Financial Market Infrastructures, and ensure their soundness, in accordance with relevant international standards. For such purpose, the Central Ban…

1. The Central Bank may suspend or revoke a license granted to a Financial Market Infrastructure, in accordance with the provisions of Article nos. (154) and (155) of this decree-law, via an official notice to the operat…

1. The Board of Directors shall issue regulations, instructions, rules, directives, and codes of conduct as it deems appropriate for the implementation of the provisions of Part IV of this decree-law, and to achieve the …

1. The Board of Directors shall issue regulations specifying types of violations pertaining to Financial Market Infrastructures licensed and Designated Infrastructure by the Central Bank, the penalties prescribed for vio…

1. All transactions conducted through a Financial Market Infrastructure, which meets one of the designation conditions referred to in item (2) of Article (157) of this decree-law shall be final, irrevocable and irreversi…

1. None of the following operations and procedures carried out through Financial Market Infrastructures, which meet one of designation conditions referred to in item (2) of Article (157) of this decree-law, shall be rega…

1. The operator of a Financial Market Infrastructure, which meets any of the designation conditions referred to in item (2) of Article (157), may effect Netting of all obligations owed to or by a Participant Person in th…

1. Except to the extent that it expressly provides, this decree-law shall not operate to limit, restrict or otherwise affect: a. Any right, title, interest, privilege, obligation or liability of a Person resulting from t…

1. A Participant Person in a Financial Market Infrastructure, which meets any of the designation conditions referred to in item (2) of Article (157) shall notify the operator of the infrastructure or its Settlement Insti…

1. Under the provisions of this decree-law, an independent committee named ‘Grievances and Appeals Committee’ shall be established. The Cabinet shall issue a resolution, based on a proposal by the Board of Directors, est…

1. Without prejudice to other sanctions or procedures stated in this decree-law or any other laws in the State, and upon establishment of a violation by any Licensed Financial Institution, Authorized Individual, or Perso…

Without prejudice to any harsher punishment provided for in any other law, the offences referred to in the following articles shall be punishable by the respective penalties stated therein.

Any Person who engages in any of the Licensed Financial Activities referred to in item (1) of Article (61) of this decree-law without a license or authorization shall be punished by imprisonment and a fine of not less th…

The following shall be punished by imprisonment and a fine of no less than one hundred thousand (100,000) Dirhams and no more than five hundred thousand (500,000) Dirhams, or by either of these two punishments: 1. Any em…

Whoever issues Currency in violation of the provisions of this decree-law shall be punished by imprisonment for a period not exceeding (20) twenty years and a fine not exceeding one hundred million (100,000,000) Dirhams,…

Whoever, publicly and intentionally mutilates, destroys or tears up Currency, shall be punished by imprisonment and a fine of not less than ten thousand (10,000) Dirhams, or by either of these two punishments.

1. Whoever contravenes the provisions of item (6) of Article (60) of this decree-law shall be punished by imprisonment and a fine not less than two hundred thousand (200,000) Dirhams and not exceeding ten million (10,000…

Whoever violates the conditions and restrictions imposed on a license to carry on Licensed Financial Activities, shall be punished by imprisonment and a fine not less than two hundred thousand (200,000) Dirhams and not e…

Whoever contravenes the Central Bank’s instructions regarding early intervention and resolution, referred to in Articles (142) and (143) of this decree-law, shall be punished by imprisonment, and a fine of not less than …

Whoever contravenes any of the provisions of Articles (67) or (121) of this decree-law shall be punished by imprisonment and a fine of not less than five hundred thousand (500,000) Dirhams and not exceeding ten million (…

1. Whoever violates any of the provisions of Article (107) of this decree-law, shall be punished by imprisonment for a term of not less than one (1) year and a fine of not less than five hundred thousand (500,000) Dirham…

Whoever commits any of the following violations shall be punished by imprisonment and a fine of not less than five hundred thousand (500,000) Dirhams, or by either of these two punishments: 1. Provides misleading or inco…

Whoever commits any of the violations relating to Financial Market Infrastructures referred to in item (1) of Article (161) of this decree-law shall be punished by imprisonment and a fine of not less than one hundred tho…

1. Where a violation was committed by a juridical person, the official in charge of management shall be punished by the same penalties prescribed for actions committed in violation of the provisions of this decree-law, w…

The Central Bank may impose fees and charges for providing any service, including but not limited to, issuing licenses and authorizations, conducting oversight and supervisory, custody, payment, and settlement related-se…

1. Current regulations, decisions, standards, guidelines, and circulars, issued in accordance with the provisions of Decretal Federal Law No (14) of 2018, Regarding the Central Bank and Organization of Financial Institut…

All agencies and Persons subject to the provisions of this decree-law shall reconcile their respective positions with its provisions, within a period of one (1) year from the date of entry into force of this decree-law. …

Any provision of applicable laws in the State contravening or conflicting with the provisions of this decree-law shall be repealed; and Decretal Federal Law No (14) of 2018, Regarding the Central Bank and Organization of…

Judgments and decisions issued by foreign judicial in respect of national Licensed Financial Institutions and branches of foreign Licensed Financial Institutions operating in the State shall apply, in accordance with app…

1. If there is a reference in any legislation in force in State to the ‘dirham’, the ‘UAE dirham’, ‘currency’, ‘cash’, ‘money’, or any similar term, this includes Currency in its digital form in accordance with the provi…

This decree-law shall be published in the Official Gazette, and shall come into force on the day following date of its publication.